Still, taking the leap from being an employee of a big-name firm to founding, equipping and operating an independent firm isn't for every broker.

"It's daunting, it really is," says Tramontano. "You need scale, for one thing; so for many, joining [an independent broker-dealer or an existing RIA] makes sense." But, he adds, taking the client-customized approach to wealth management he and his colleagues at Constellation decided on calls for the kind of freedom to engage outside asset managers and other product and service providers that comes only with independence.

Unusually, Constellation's founders hired dedicated managers to see to things like business development, information technology, compliance and finances instead of dividing them up among themselves as added responsibilities.

"It's overhead, sure, but I'm a firm believer in finding everyone's best use," says Tramontano. His own talent: "I'm a good adviser." Others in the senior management team are "quality people who are good at what they do."

Constellation manages about $4 billion and has 33 employees in offices in New York and Menlo Park, Calif.

Copyright (c) 2010, Dow Jones. For more information about Dow Jones' services for advisors, please click here.

 

First « 1 2 » Next